Salvage Home Automobiles

Location,City : Ghana / Accra

Max Target : $ 500,000

Equity on offer : 20 %

Min Target : $ 100,000

Equity on offer : 10 %

Industry :
Sales and Marketing

Investment Round :
Early stage

Stage :
Established

Website : Visit

Posted By : Benson Amoako Connect

Summary

Salvage home Automobile is an independently-owned business, established in 2019 by an Auto sale expect with 10 years
of vehicle sales experience. We provide a unique car buying experience for customers in Ghana by providing inspected,
top quality, used vehicles for all types of consumers, we also distribute car spare parts at a competitive price. We are conveniently located in Accra -Ghana

Pitch Video

The Business

1.1. The problem and solution
In Ghana, the existing car dealing companies are apparently doing great but are located mainly in Accra so people from
other region will travel a long way to Accra before they can buy a new or used car. Salvage Home Automobiles will be the only
used car Company that will be located in the Northern Region, central Region and others region of Ghana thereby serving
the niche market at their door steps.

1.2. Objectives
1. 100% customer satisfaction
2. To achieve and surpass the industry average profit margin within the first two-years.
3. To achieve a respectable net profit by year two.

1.3. Mission
Salvage Home Automobiles will provide a unique car buying experience to the customers in the Ghana. One that focuses on
customer satisfaction first. We understand that vehicle purchasing is a necessary, but sometimes unpleasant experience.
Our goal is to provide the customer with an enjoyable, honest service by satisfying individual customers practical
transportation needs with a quality product.

Salvage Home Automobiles will sell second hands cars especially buy accident cars and repair to resell, to the people of Ghana.
Cars sold shall be those made from 2012 and above and should be in good condition at the time of sales. The purchase
price of the cars shall depend on the total Bid win from the auction company and this range could increase later depending
on the demand.

3.1. Competitive Comparison
The founding entrepreneurs are all business oriented and shall all possess master degrees from Ghana and other country,
Furthermore, the founding entrepreneurs have a broad network including potential suppliers and agents in Japan, USA, which shall serve as a competitive advantage over its Ghanaian competitors.

Salvage Home Automobiles will overcome the problem of most businesses in Ghana, which is usually
late declaration and under-declaration of taxes that leads to tax penalties, which at times goes up to 100% and more.

3.2. Sourcing
Sourcing is critical for any enterprise, and has a direct impact on vehicle pricing. We will thoroughly inspect each vehicle
and select only the best to maintain a high quality of inventory. We will purchase vehicles bi-monthly through auction
export and SBT japan. Lastly, we will take limited trades of used vehicles, ensuring resale value at or above wholesale
price. The majority of our vehicles will be priced between $3,000 and $15,000, averaging $5,000 per vehicle. A far greater
profit margin is available for low-end $2,000 vehicles than high-end $15,000 vehicles. Most sales promotions and
advertising costs are limited, and will be handled in-house by our record keeper.

3.3. Future Products
Future products will include specialized sales in used recreational vehicles, trailers, off-road vehicles. These products will
be purchased and sold through the same methods, and taken in on trade. They will further diversify a wide selection
and there exist limited competition in the used recreational vehicle business.

Almost everyone needs a car to get from point A to B. Many families have two or more cars. Due to the recent success of
the new car market, there is a large inventory of used cars available for re-sale.

The Market

4.1. Market Segmentation
The Salvage Home Automobiles shall operate two branches in the first three years. One shall be in Accra and the other one
shall be in Kumasi, to cover the Northern part of Ghana. We focus on providing for the average car buyer first.
Our focus will be on those most likely to purchase low-end, low-cost vehicles (highest profit margin). Newly employed
workers who have been granted car loans; Owners of cocoa farms and palm plantations; Business owners who want
a car for status and recognition; Taxi business owners who want to increase their number of cars; Officers who want
to buy cars for their wives; Companies, Common Initiative Groups (C.I.Gs) and Non-Governmental Organizations
(N.G.Os) who need a car(s) to help in carrying out their activities in a better manner, especially for inspection and
control.

Objective/Future (Use of funds)

The fund will be use as a start up capital which will be use to buy land and set up mechanic and spraying shop.
The fund will be used to purchase accident cars from auction companies.
It will be also use to pay import duties and other fees.

The fund will be use to rent a place to park the cars. Some will be use to buy cars and pay other fees like import duties, taxes, transportations etc.

The Team

Boamah - Owner of real color spraying shop

He has been in the car business for about 5years and has connection to turn my ideas into reality.

Exit Strategy

4.5. Marketing Strategy
Our marketing strategy will focus on two segments. Those segments are described in the following subtopics. We will
implement a strategy that treats customers as a community. This means our marketing resources will be centered around
advertising both sales promotions (events) and personal sales (customer service, friendly atmosphere).

• The marketing budget will not exceed $6,000 per year.
• Marketing promotions will be consistent with the Mission Statement and support the following objectives:
a. 100% customer satisfaction, measured through repeat customers.
b.To achieve a respectable profit margin within the first three-years.
c. To achieve a healthy net profit by year two.

4.6. Sales Strategy
Sales compensation is based on a percent of profits. We will invest adequate time and resources into training each
member of the sales team and into good customer relations. Salesmen will be paid a portion of their salary based on
commission. Good performance is rewarded with increased commission and bonuses.
However, Salvage Home Automobiles will not be sacrificed for sales. Customer satisfaction will continue to be a top priority. All
potential sales will be attended to in a timely fashion and long-term salesperson-customer relationships will take precedence over sales closure.

Sales Forecast
The following table give a run-down on forecasted sales. We expect sales to increase at a slow rate per month for each
product in the first year. We expect increased sales in lower-priced vehicles, and this will be our primary product that yields the highest margin. We feel this sales forecast is realistic based
on the market analysis of similar businesses performance.

The opportunities for used car sales has increased with the high sales of new vehicles, increasing the number of quality
late model used vehicles in the market. More new car buyers directly affect the number of used cars available. The current low interest rates also have a positive impact on the high-end vehicle purchases. The population growth in the area creates a need for more vehicles as well.

The risks involved with this forecast include technology and the need for low impact environment friendly transportation.
Older used cars tend to be less efficient, and will become less popular. Current hybrid vehicles are priced extremely high,
and car makers have not found an economical answer for consumers. We estimate conservative earnings from selling
extended warranties and from selling loans (we will sell the loan for the lender). }

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Looking For : Fund Raiser
Equity : 2%

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